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REPUBLIC ACT NO.

1199
August 30, 1954

AN ACT TO GOVERN THE RELATIONS BETWEEN


LANDHOLDERS AND TENANTS OF AGRICULTURAL
LANDS (LEASEHOLDS AND SHARE TENANCY).

PART I
GENERAL PROVISIONS

Sec. 1. Title. - This Act shall be known as the "Agricultural Tenancy Act
of the Philippines."
Sec. 2. Purposes. - It is the purpose of this Act to establish agricultural
tenancy relations between landholders and tenants upon the principle
of school justice; to afford adequate protection to the rights of both
tenants and landholders; to insure an equitable division of the
produce and income derived from the land; to provide tenant- farmers
with incentives to greater and more efficient agricultural production; to
bolster their economic position and to encourage their participation in
the development of peaceful, vigorous and democratic rural
communities.
Sec. 3. Agricultural Tenancy Defined. - Agricultural tenancy is the
physical possession by a person of land devoted to agriculture
belonging to, or legally possessed by, another for the purpose of
production through the labor of the former and of the members of his
immediate farm household, in consideration of which the former
agrees to share the harvest with the latter, or to pay a price certain or
ascertainable, either in produce or in money, or in both.
Sec. 4. Systems of Agricultural Tenancy; Their Definitions. - Agricultural
tenancy is classified into leasehold tenancy and share tenancy.
Share tenancy exists whenever two persons agree on a joint
undertaking for agricultural production wherein one party furnishes
the land and the other his labor, with either or both contributing any
one or several of the items of production, the tenant cultivating the
land personally with the aid of labor available from members of his
immediate farm household, and the produce thereof to be divided
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between the landholder and the tenant in proportion to their


respective contributions.
Leasehold tenancy exists when a person who, either personally
or with the aid of labor available from members of his immediate farm
household, undertakes to cultivate a piece of agricultural land
susceptible of cultivation by a single person together with members of
his immediate farm household, belonging to or legally possessed by,
another in consideration of a price certain or ascertainable to be paid
by the person cultivating the land either in percentage of the
production or in a fixed amount in money, or in both.
Sec. 5. Definitions of Terms. - As used in this Act:
(a) A tenant shall mean a person who, himself and with the aid
available from within his immediate farm household, cultivates the
land belonging to, or possessed by, another, with the latter's consent
for purposes of production, sharing the produce with the landholder
under the share tenancy system, or paying to the landholder a price
certain or ascertainable in produce or in money or both, under the
leasehold tenancy system.
(b) A landholder shall mean a person, natural or juridical, who,
either as owner, lessee, usufructuary, or legal possessor, lets or
grants to another the use or cultivation of his land for a consideration
either in shares under the share tenancy system, or a price certain or
ascertainable under the leasehold tenancy system.
(c) Agricultural year is the period of time necessary for the raising
of seasonal agricultural products, including the preparation of the
land, and the sowing, planting and harvesting of the crop: Provided,
however, That in the case of coconuts, citrus, coffee, ramie, and other
crops where more than one harvest is obtained from one planting, the
words "agricultural year" shall mean the period of time from the
preparation of land to the first harvest and thereafter from harvest to
harvest. In both cases, the period of time may be shorter or longer
than a calendar year.
(d) Farm implements include hand tools or machines ordinarily
employed in a farm enterprise.
(e) Work animals include animals ordinarily employed in a farm
enterprise. The words include carabaos, horses, bullocks, etc.
(f) Pulling of the seedlings is a phase of farm work in which
seedlings are uprooted from the seed beds immediately before
transplanting. cdasia
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(g) Final harrowing in the last stage in pulverizing the soil into fine
particles in readying the field for the transplanting of the seedlings.
(h) Reaping is the cutting of rice stalks.
(i) Harvesting shall mean the gathering of the fruits or produce of a
crop other than rice.
(j) Piling into small stacks used as a term in rice share tenancy
shall mean the piling into several small stacks within the tenant's
holdings of reaped and bundled stalks containing the grain,
preparatory to their transportation to the place designated for their
threshing.
(k) Piling into big stacks used as a term in rice share tenancy shall
mean the piling into one huge stack of the several small stacks of
reaped and bundled stalks containing grain, which constitute the
entire harvest of the tenant from his holdings, preparatory to
threshing.
(l) Proven farm practices include those sound farming practices
which have attained general acceptance through usage or are
officially recommended by the Department of Agriculture and Natural
Resources. aisa dc
(m) Fair rental value is an amount of money not in excess of
allowable depreciation plus six per cent interest per annum on the
investment computed at its market value: Provided, however, That
the fair rental value for the work animal or animals and farm
implements required to produce the crop shall not exceed five per
cent of the gross harvest for the animal or animals and five per cent
for implements: And, provided, further, That whenever a tractor or
power and the necessary implements are utilized interchangeably
with work animals in the same holding during the same agricultural
year the rental shall not exceed ten per cent for the combined
services.
(n) Immediately after as used in this Act shall be inclusive of the
last day of harvesting, threshing or processing and the next five days
thereafter.
(o) Immediate farm household includes the members of the family
of the tenant, and such other person or persons, whether related to
the tenant or not, who are dependent upon him for support and who
usually help him operate the farm enterprise.
(p) Incapacity means any cause or circumstances which prevents
the tenant from fulfilling his contractual obligations and those imposed
by this Act.
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(q) Inspect means to examine and observe. However, such


examinations and observations shall not include any acts of
intimidation or coercion.
(r) Auxiliary crop is any product raised other than the crop to which
the cultivation of the land is principally devoted; and excluding the
produce of the lot referred to in Section twenty-six.
Sec. 6. Tenancy Relationship; Its Definition. - Tenancy relationship is a
juridical tie which arises between a landholder and a tenant once they
agree, expressly or impliedly, to undertake jointly the cultivation of
land belonging to the former, either under the share tenancy or
leasehold tenancy system, as a result of which relationship the tenant
acquires the right to continue working on and cultivating the land, until
and unless he is dispossessed of his holdings for any of the just
causes enumerated in Section fifty or the relationship is terminated in
accordance with Section nine.
Sec. 7. Tenancy Relationship; How established; Security of Tenure. -
Tenancy relationship may be established either verbally or in writing,
expressly or impliedly. Once such relationship is established, the
tenant shall be entitled to security of tenure as hereinafter provided.
Sec. 8. Limitations of Relation. - The relation of landholder and tenant
shall be limited to the person who furnishes land, either as owner,
lessee, usufructuary, or legal possessor, and to the person who
actually works the land himself with the aid of labor available from
within his immediate farm household.
Sec. 9. Severance of Relationship. - The tenancy relationship is
extinguished by the voluntary surrender of the land by, or the death or
incapacity of, the tenant, but his heirs or the members of his
immediate farm household may continue to work the land until the
close of the agricultural year. The expiration of the period of the
contract as fixed by the parties, and the sale or alienation of the land
do not of themselves extinguish the relationship. In the latter case,
the purchaser or transferee shall assume the rights and obligations of
the former landholder in relation to the tenant. In case of death of the
landholder, his heir or heirs shall likewise assume his rights and
obligations.
Sec. 10. Contracts; Nature and Continuity of Conditions. - The terms and
conditions of tenancy contracts, as stipulated by the parties or as
provided by law, shall be understood to continue until modified by the
parties. Modifications of the terms and conditions of contracts shall
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not prejudice the right of the tenant to the security of his tenure on the
land as determined in Section six, seven, and forty-nine.
Sec. 11. Freedom to Contract in General. - The landholder and the
tenant shall be free to enter into any or all kinds of tenancy contract,
as long as they are not contrary to law, morals or public policy. Except
in case of fraud, error, force, intimidation or undue influence, when
such contract is reduced to writing and registered as hereinafter
provided, the latter shall be conclusive evidence of what has been
agreed upon between the contracting parties, if not denounced or
impugned within thirty days after its registration.
Said contract shall be contrary to law, morals and public policy;
A. In Share Tenancy
(a) If the tenant is to receive less than the corresponding share for
the different contributions be made to the production of the farm
as hereinafter provided.
(b) If it is stipulated that the tenant or any member or his immediate
farm household shall without compensation perform any work or
render any service not connected with the tenant's duties and
obligations provided under this Act.
B. In Leasehold Tenancy
(a) If the tenant-lessee is to pay to the landholder, lessor, as a
consideration for the use of the land, an amount in excess of
that hereinafter provided for the kind and class of land involved.
(b) If the tenant-lessee is to pay the landholder-lessor a
consideration in excess of the amount prescribed as fair rental
value, as determined pursuant to the provisions of this Act, for
the use of work animals, services and/or farm implements
belonging to the landholder-lessor, in case it is agreed between
the parties that the latter shall furnish any or all of these items
of production.
(c) If it is stipulated that, as a condition precedent to the
commencement or continuance of the lease, the tenant-lessee
shall rent work animals, services or farm implements, or shall
make use of any store or services operated by the landholder-
lessor or any other person, or that the landholder-lessor may
impose fines, deductions and/or assessments, or that the
tenant-lessee shall, without compensation, perform any work or
render any service not connected with the tenant's duties and
obligations provided under this Act.
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Sec. 12. Form and Registration of Contract. - A contract of tenancy in


writing, in order to be conclusive as evidence, shall be drawn in
quadruplicate in the language or dialect known to all the parties
thereto and signed or thumb-marked both by the landholder or his
authorized representative, and the tenant himself, before two
witnesses, one to be chosen by each party. If any of the parties does
not know to read, one of the witnesses, to be chosen by him, shall
read the contents of the document to him. Each of the contracting
parties shall retain a copy of the contract and the third and fourth
copies shall be delivered to the municipal treasurer of the municipality
where the land which is the subject-matter of the contract is located,
who shall file and register the third copy in his office and forward the
fourth copy to the court: Provided, That in order that a tenancy
contract may be registered, it shall be the duty of the municipal
treasurer and tenant, respectively, and to place an annotation on
each copy of the fact of registration in his office, stating the date, time
and place of registration as well as the entry or registration number.

The form of contract shall be uniform and shall be prepared and


furnished by the court. The contracting parties shall acknowledge the
execution of the contracting before the municipal treasurer or justice of the
peace or the mayor of the municipality where the land is situated. No fees
or stamps of any kind shall be paid or required.
When one of the parties is unable to read, in case of doubt the
burden of proof to show that he understood the terms of the contract shall
rest upon the other party who is able to read. cda
Sec. 13. Registry of Tenancy Contracts. - For the purposes of this Act,
the municipal treasurer of the municipality wherein the land which is
the subject-matter of a tenancy contract is situated shall keep a
record of all such contracts entered into within his jurisdiction, to be
known as "Registry of Tenancy Contracts." He shall keep this registry
together with a copy of each contract entered therein, and make
annotations on said registry of all subsequent acts relative to each
contract, such as its renewal, novation, cancellation, etc.: Provided,
That the municipal treasurer shall not charge any fee for the
registration of said contracts or of any subsequent acts relative
thereto, none of which shall be subject to the documentary stamp tax.
Sec. 14. Change of System. - The tenant shall have the right to change
the tenancy contract from one of share tenancy to the leasehold
tenancy and vice versa and from one crop-sharing arrangement to
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another of the share tenancy. If the share tenancy contract is in


writing and is duly registered, the right may be exercised at the
expiration of the period of the contract. In the absence of any written
contract, the right may be exercised at the end of the agricultural
year. In both cases the changed to the leasehold system shall be
effective one agricultural year after the tenant has served notice of his
intention to change upon the landholder.
Sec. 15. Interest on Loans or Advances. - On all loans or advances
obtained by the tenant from the landholder in connection with the
cultivation, planting, harvesting and other incidental expenses for the
improvement of the crop planted, as well as loans or advances for the
subsistence of the tenant and his family, the interest which may be
stipulated shall not exceed eight per centum per calendar year:
Provided, That on all loans or advances other than money, such as
grain or other agricultural products, made computed on the basis of
the current price of the produce at the time it was loaned. Violation of
the provisions of this section shall be punished in accordance with the
Usury Law.
Sec. 16. Memorandum of Loans or Advances. - Any obligation referring
to any amount either in money or in kind, including the payment of
interest, which the tenant may have received from time to time as
loan or advance from the landholder, shall be void unless the same,
or some note or memorandum thereof, be in writing in a language or
dialect known to the party charged, and subscribed by said party, or
by his authorized agent.
Sec. 17. Form of Final Accounting. - The final accounting between
landholder and tenant at the end of each agricultural year shall be
effected within ten days after the threshing in case of rice and within
the same period of time after the harvest or gathering of the fruits in
the case of crops. In case of crops which have to be said in
processed form, the final accounting shall be within five days after the
sale is consummated and the sales receipt shall be exhibited to the
tenant.
The accounting shall be made to appear in a not or
memorandum written in a language or dialect known to the tenant
and signed by both parties in the presence of two witnesses who
shall be selected by each party. Each of the contracting parties shall
be furnished with a copy of said note or memorandum and such final
accounting, once duly signed by both parties and two witnesses, shall
be deemed conclusive evidence of its contents, except in case of
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fraud, error, force, intimidation or undue influence. When one of the


parties is unable to read, the burden of proof, in case of doubt, to
show that he understood the accounting, shall rest upon the other
party who is able to read. acd
In the absence of a written accounting in accordance with the preceding
paragraph, the tenant may, within three years from the date of the
threshing of the crop in question, petition the Court to compel the
landholder to render an accounting of the same in accordance with
this section.
Sec. 18. Settlement of Debts. - Once the accounting is made, any
amount of money which the landholder may have advanced to the
tenant for expenses of cultivation, harvesting or gathering of the crop
or for his own private use, as well as any amount of grain or
agricultural products advanced for his subsistence and that of his
family, shall be paid by the tenant out of his share either in grain or in
money, at the option of the latter; Provided, That such grain or
agricultural products shall be appraised in money according to their
current market value at the place where the land is located at the time
of their delivery to the tenant: Provided, further, That in case his share
is not sufficient, his outstanding debt shall be reduced to money and
shall bear an interest of not more than ten per cent per annum: And
provided, finally, That the remaining debts of the tenant once
converted into money shall not again be converted into kind. Said
outstanding debt money may, however, be paid in money or in
agricultural products appraised at the local current market price at the
time of payment.
Sec. 19. Exemption from Lien and/or Attachment. - Twenty-five per
centum of the tenant's share of the produce of the land in share
tenancy, or of the entire produce in leasehold tenancy, one work
animal and one of each kind of farm implement belonging to the
tenant, provided that the value of such work animal and implements
do not exceed five hundred pesos, shall be exempt from lien and
attachment.
Sec. 20. Use of Official Weights and Measures. - In all transactions
entered into between the landholder and the tenant concerning
agricultural products the official weights and measures of the
Government shall be used.
Sec. 21. Ejectment: Violation; Jurisdiction. - All cases involving the
dispossession of a tenant by the landholder or by a third party and/or
the settlement and disposition of disputes arising from the
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relationship of landholder and tenant, as well as the violation of any of


the provisions of this Act, shall be under the original and exclusive
jurisdiction of such court as may now or hereafter be authorized by
law to take cognizance of tenancy relations and disputes. cd I

PART II
THE SHARE SYSTEM

Chapter I
Common Provisions

Sec. 22. Rights of the Tenant.


(1) The tenant shall be free to work elsewhere whenever the nature of
his farm obligation warrants his temporary absence from his holdings.
(2) The tenant shall, aside from his labor, have the right to provide any of
the contributions for production whenever he can do so adequately
and on time.
(3) The tenant's dwelling shall not, without his consent, be removed from
the lot assigned to him by the landholder, unless there is a severance
of the tenancy relationship between them as provided under Section
nine, or unless the tenant is ejected for cause, and only after the
expiration of forty-five days following such severance of relationship
or dismissal for cause.
If the tenant is dismissed without just cause and he is constrained to work
elsewhere, he may choose either to remove his dwelling at the
landholder's cost or demand the value of the same from the
landholder at the time of the unjust dismissal.
(4) The tenant shall have the right to be indemnified for his labor and
expenses in the cultivation, planting, or harvesting and other
incidental expenses for the improvement of the crop raised in case he
is dispossessed of his holdings, whether such dismissal is for a just
cause and not, provided the crop still exists at the time of the
dispossession.
Sec. 23. Obligations for the tenant. - It shall be the obligation of the
tenant:
(1) To cultivate and take care of the farm, the growing crop and other
improvements entrusted to him as a good father of a family, by doing
all the work necessary in accordance with proven farming practices.
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(2) To inform the landholder at once of any trespass committed by a third


person upon the farm.
(3) To take reasonable care of the work animals and farm implements
used in the point undertaking. He shall not use the work animals and
farm implements entrusted to him by the landholder for purposes
other than those intended, or allowed their use by other persons
without the knowledge and consent of the landholder.
The tenant shall not abandon or surrender his holdings and leave the farm
and growing crop and other improvements unattended during the
watch season, except for just and reasonable cause. In case of such
unjustified abandonment or surrender, any or all of his expected
share in the crop may, in the discretion of the court, be forfeited in
favor of the landholder to the extent of the damage caused thereby.
Any of the following shall be considered just and reasonable cause for the
tenant to terminate the tenancy relationship; aisa dc
(a) Cruel, inhuman or offensive treatment on the part of the landholder of
his representative toward the tenant or any member of his immediate
farm household.
(b) Non-compliance on the part of the landholder with any of the
obligations imposed upon him by the provisions of this Act or by the
contract.
(c) If the landholder or his representative compels the tenant or any
member of his immediate farm household to do any work or render
any service not in any way connected with his farm work, or even
without compulsion if no compensation is paid.
(d) Commission of a crime by the landholder or his representative
against the tenant or any member of his immediate farm household.
Sec. 24. Prohibitions to Tenant.
(1) It shall be unlawful for the tenant, whenever the area of his
holdings is five hectares or more, or is sufficient size to make
him and the members of his immediate farm household fully
occupied in its cultivation, to contract to work at the same time
on two or more separate holdings belonging to different
landholders under any system of tenancy, without the
knowledge and consent of the land-holder with whom he first
entered into tenancy relationship.
(2) It shall be unlawful for a share-tenant to employ a sub-tenant to
furnish labor or any phase of the work required of him under
this Act, except in cases of illness or any temporary incapacity
on his part, in which eventuality the tenant or any member of
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his immediate farm household is under obligation to report such


illness or incapacity to the landholder. Payment to the sub-
tenant, in whatever form, for services rendered on the land
under this circumstance, shall be for the account of the tenant.
(3) Subject to provisions of the next preceding paragraph, land
entrusted for cultivation to a leasehold tenant shall not be sub-
let nor shall the lease be assigned by the tenant to another
person, except with the written consent of the lessor.

Sec. 25. Rights of the Landholder:

(1) The landholder shall have the right to choose the kind of crop
and the seeds with the tenant shall plant in his holdings:
Provided, however, That if the tenant should subject, the court
shall settle the conflict, according to the best interest of both
parties.
(2) The landholder shall have the right to require the use of
fertilizer of the kind or kinds shown by proven farm practices to
be adapted to the requirements of the land.
(3) The landholder shall have the right to inspect and observe the
extent of compliance on the part of the tenant with the terms
and conditions of their contract and the provisions of this Act.
(4) In cases where the crop has to be sold in processed form
before division and the tenant has no representative, the
landholder, shall have the right to deal with millers or
processors in representation of the tenant.
Sec. 26. Obligations of the Landholder:
(a) The landholder shall furnish the tenant an area of not less than
one thousand square meters where the latter may construct his
dwelling, raise vegetables, poultry, pigs, and other animals and
engage in minor industries, the products of which shall accrue
to the tenant exclusively.
(b) The landholder shall keep the tenant in the peaceful possession
and cultivation of his landholdings which are the subject matter
of the contract.

Sec. 27. Prohibitions to the Landholder:


(1) The landholder shall not dispossess the tenant of his holdings
except for any of the causes enumerated in Section fifty, and
without the cause having been proved before, and the
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dispossession authorized by, the court; otherwise, he shall,


aside from the penalty of fine and/or imprisonment provided for
any violation of this Act, be liable to the tenant for damages to
the extent of the landholder's right under Section twenty-two of
this Act.
(2) The landholder shall be responsible for the payment of taxes
levied by the Government upon the land which is the subject-
matter of the contract and it shall be unlawful to make the
tenant bear in part of all of the same, either directly or indirectly.
(3) The landholder shall not require the tenant to bear, directly or
indirectly, any part of the rent, "canon" or other consideration
which he, the former, may be under obligation to pay to a third
person for the use of the land. cdasia
Sec. 28. Expenses for Seeds; Fertilizer; Pest and Weed Control
Expenses.
(1) The same amount of seeds or seedlings used in the production
of any crop shall be deducted from the gross harvest and
returned to the party who furnished the same.
(2) The cost of fertilizer and expenses for pest and weed control as
evidenced by sales invoices shall be paid out of the gross
harvest and returned to the party who advanced the cost and
expenses. cdtai
Sec. 29. Irrigation System. - The cost of the construction of an irrigation
system, including the distributory canals, shall be borne exclusively
by the landholder. The cost of maintenance and operation of the
system shall, however, be borne by the landholder and the tenant in
proportion to their respective shares in the harvest.
Sec. 30. Auxiliary Crop. - In case the land is planted to an auxiliary crop,
the tenant shall receive eighty per centum and the landholder twenty
per centum of the net produce, provided all expenses of production
are borne by the tenant.
Auxiliary crops shall, not, however, be construed to include the
crops or products raised from the garden, poultry and other industries
carried on the lot specifically provided for the tenant under Section
26(a) hereof.
Sec. 31. Cost of Fertilizer, etc.; when to be Advanced by the
landholder. - Whenever the use of fertilizer or the application of
insect, disease and rodent control measures is directed by the
landholder, he shall advance their cost, which shall be deducted from
the gross produce.
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Chapter II
Rice Share Tenancy

Sec. 32. Share Basis. - The parties shall, on ricelands which produces a
normal average of more than forty cavanes per hectare for the three
agricultural years next preceding the current harvest, receive as
shares in the gross produce, after setting aside the same amount of
palay used as seed, and after deducting the cost of fertilizer, pest and
weed control, reaping and threshing, the amount corresponding to the
total equivalent of their individual contributions, computed as follows;
Contribution Participation
1. Land 30%
2. Labor 30%
3. Farm implements 5%
4. Work Animals 5%
5. Final harrowing of the field immediately
before transplanting 5%
6. Transplanting 25%
Sec. 33. Share basis on Second Class Land. - On ricelands, which
produce a normal average of forty cavans or less per hectare for the
three agricultural years next preceding the current harvest, the
participation for the contribution of the land shall be twenty-five per
centum and that of labor, thirty-five per centum. cd
Sec. 34. Reimbursement Not Allowed. - Contributions or shares in the
contribution to the production of the crop in the form of cash, grain or
services, once shouldered or rendered alone by one party may not be
reimbursed by the other party after the phase or phases of work
required in the joint undertaking shall have been completed.
Sec. 35. Sharing of Expenses. - In case the landholder and the tenant
agree to share equally in the expenses of final harrowing of field and
transplanting, the latter may engage the services of persons or
helpers to perform these phases of farm work, provided the rates for
each shall have been previously determined and agreed upon
between the landholder and the tenant. In case of disagreement upon
said rates, the party who undertakes to the corresponding share in
the harvest, after deducting the expenses of reaping.
Sec. 36. Further Rights of the Tenant. - In addition to the provision of
Section twenty-two, the tenant shall have the right to:
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1. Determine when to scatter the seeds, to transplant the


seedlings, and to reap the harvest, provided they shall be in
accordance with proven farm practices and after due notice to
the landholder.
2. Choose the thresher which shall thresh the harvest whenever it
is the best available in the locality and the best suited to the
landholder's and tenant's needs and provided the rate charged
is equal to or lower than the rate charged by the owner of other
threshers under similar circumstances: Provided, further, That
in cases where there are more than tenant the selection of the
majority of the tenants shall prevail: Provided, finally, That if the
landholder is the owner of a thresher and is ready and willing to
grant equal or lower rates under the same conditions, the use
of the landholder's thresher shall be given preference.
3. Apply appropriate pest, insect, disease and rodent control
measures whenever in his judgment such action is necessary:
Provided, however, That if a tenant fails to apply any of the
above control measures after the landholder has made a
request in writing for such action, he shall be liable for any loss
resulting from such failure.
4. Apply fertilizer of the kind or kinds shown by proven farm
practices to be adapted to the requirements of the land,
provided the landholder has not exercised his right under
Section twenty-five to require the use of such fertilizer.
Sec. 37. Further Rights of the Landholder. - In addition to the provisions
of Section twenty-five, the landholder, by himself or through his
representative, may determined:
1. The proper height of pilapils or dikes according to the local
practices.
2. The location and size of irrigation canals.
3. The site for the stacking of the harvest, provided it shall not be
farther than one kilometer from the center of the area cultivated
by a majority of the tenants.
4. The date of threshing.
Provided, however, that in case of disagreement by the tenant in any
of the foregoing instances, the court shall determine whatever may be in
the interest or both parties.
Sec. 38. Labor; What It Constitutes. - The tenant shall perform the
following as the labor contributed by him under Section thirty-two;
casia
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1. The preparation of the seedbed which shall include plowing,


harrowing, and watering of the seedbed, the scattering of the
seeds, and the care of the seedlings.
2. The plowing, harrowing, and watering of the area he is
cultivating, except final harrowing of the field as an item of
contribution specified in Section thirty-two of this Act.
3. The maintenance, repair and weeding of dikes, paddies, and
irrigation canals in his holdings.
4. The pulling and bundling of the seedlings preparatory to their
transplanting.
5. Care of the growing plants.
6. Gathering and bundling of the reaped harvest.
7. The piling of the bundles into small stacks.
8. The preparation of the place where the harvest is to be stacked.
9. Gathering of the small stacks and their transportation to the
place where they are to be stacked.
10. Piling into a big stack preparatory to threshing.
Sec. 39. Prohibition on Pre-Threshing. - It shall be unlawful for either the
tenant or the landholder, without mutual consent, to reap or thresh a
portion of the crop at any time previous to the date set for its
threshing. Any violation by either party shall be treated and penalized
in accordance with this Act and/or under the general provisions of law
applicable to the act committed.
Sec. 40. Place of Crop Division. - The division of the crop shall be made
in the same place where the harvest has been threshed and each
party shall transport his share to his warehouse or barn, unless the
contrary is stipulated by the parties.

Chapter III
Share Tenancy on Crops other than Rice

Sec. 41. Basis of Shares in Crops other than Rice. - The landholder and
the tenant on lands which produce crops either than rice shall be free
to enter into any contract stipulating the ratio of crop division. In the
absence of a stipulation, the customs of the place shall govern:
Provided, That whether the basis of division of the crop is the contract
between the parties or the customs of the place, the share of the
tenant for his labor in the production shall not less than thirty per cent
of the harvest or produce, after deducting the expenses for harvesting
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and/or initial processing: Provided, further, That in cases where the


share of the tenant is, according to local practices or customs
prevailing at the time of the approval of this Act, more than the
minimum herein set, the tenant's share thus established by local
practices or customs shall prevail and be considered the minimum.

PART III

THE LEASEHOLD TENANCY

Sec. 42. Landholder-Lessor and Tenant-Lessee, Defined. Any person,


natural or juridical, either as owner, lessee, usufructuary or legal
possessor or agricultural land, who lets, leases or rents to another
said property for purposes of agricultural production and for a price
certain or ascertainable either in an amount of money or produce,
shall be known as the landholder-lessor; and any person who, with
the consent of the former, tills, cultivates or operates said land,
susceptible of cultivation by one individual, personally or with the aid
of labor available from among his own immediate farm household, is
a tenant-lessee.
Sec. 43. Rights and Obligations of Tenant-Lessee. - With the creation of
the tenancy relationship arising out of the contract between the
landholder-lessor and tenant-lessee, the latter shall have the right to
enter the premises of the land, and to the adequate and peaceful
enjoyment thereof. He shall have the right to work the land according
to his best judgment, provided this manner and method of cultivation
and harvest are in accordance with proven farm practices. Upon
termination of the relationship, he shall be entitled to one half of the
value of the improvements made by him, provided they are
reasonable and adequate to the purposes of the lease.
The tenant-lessee shall pay the consideration stipulated in the
lease contract provided it shall not exceed the limit fixed in Section
forty-six. In the absence of stipulation, the consideration shall be that
established in said Section forty-six. He shall make proper use of the
land and the improvements thereon and shall be under obligation to
cultivate it as a good father of a family, by doing all the work
considered reasonable and necessary in accordance with proven
farm practices. He is likewise obliged to take reasonable care of the
work animals and farm implements that may be delivered to him by
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the land-holder, in case it is agreed between the parties that the


landholder-lessor shall furnish any or all of them.
Sec. 44. Rights of Landholder-lessor. - The landholder-lessor or his duly
authorized representatives shall have the right to inspect the
premises of the land which is the subject of the lease for the purpose
of ascertaining the tenant's compliance with the provisions of the
contract and of this Act, but in no case shall he exercise any coercion,
intimidation or violence in word or deed.
Sec. 45. Manner of Rental Payment. - Payment of the consideration for
the use of land may be made either in an amount certain or
ascertainable in money or in produce, or both.
Sec. 46. Consideration for the Use of Land.
(a) The consideration for the use of ricelands, shall not be more than
thirty per centum of the gross produce for first class lands and not
more than twenty-five per centum for second class lands.
Classification of ricelands shall be determined by productivity: first
class lands being those which yield more than forty cavanes per
hectare and second class lands being those which yield forty cavanes
or less, the same to be computed upon the normal average harvest of
the three preceding years.
(b) The consideration for agricultural land where exist fruit trees and
other useful trees and plants, from which the whole or any portion of
the produce of the said land is taken, shall not be more than what
have been specified in the preceding section: Provided, however,
That additional considerations for the employment of said trees and
useful plants, if the principal product is rice or other crops, shall be
decided and specified by negotiation between the landholder-lessor
and the tenant-lessee; Provided, further, That where the tenant-
lessee, during the period of the lease and/or in consideration thereof,
plants and/or takes care of said trees and plants, with the consent of
the landholder-lessor, the tenant-lessee shall be compensated by the
latter in the manner agreed between them.
(c) The consideration for the use of sugar lands, fishponds, saltbeds and
of lands devoted to the raising of livestock shall be governed by
stipulation between the parties.
Sec. 47. Rental of Work Animals, etc., and Applicability of Schedules. -
Upon agreement of the parties, the tenant- lessee may make use of
such work animals, farm implements or services belonging to the
landholder-lessor as are available for hire, the consideration of which
shall be based on their fair rental value.
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The rates on the fair rental value for the use of work animals,
farm implements and services, belonging to the landholder-lessor
shall be those provided in Schedules "A", "B", and "C", which shall
apply upon approval of this Act and shall remain in force, unless the
Secretary of Agricultural and Natural Resources revises the same in
accordance with Section fifty-two. acd
Sec. 48. Loans and Interests. - Loans, either in money or in kind,
obtained by a tenant-lessee from the landholder lessor shall be
payable at the time stipulated: Provided, however, That this shall not
be construed as prejudicing the right of the borrower to repay his
obligation before the date of maturity. The loan, unless it is otherwise
stipulated, shall be payable in money at not more than eight per cent
interest per annum, computed from the date of the indebtedness was
contracted up to and including the date of payment. A note or
memorandum to evidence such indebtedness shall be executed in
accordance with the provisions of Section sixteen.

PART IV
SECURITY OF TENURE

Sec. 49. Ejectment of Tenant. - Notwithstanding any agreement or


provision of law as to the period, in all cases where land devoted to
any agricultural purpose is held under any system of tenancy, the
tenant shall not be dispossessed of his holdings except for any of the
causes hereinafter enumerated and only after the same has been
proved before, and the dispossession is authorized by, the court.
Sec. 50. Causes for the Dispossession of a Tenant. - Any of the following
shall be a sufficient cause for the dispossession of a tenant from his
holdings:
(a) The bona fide intention of the landholder to cultivate the land
himself personally or through the employment of farm
machinery and implements: Provided, however, That should the
landholder not cultivate the land himself or should fail to employ
mechanical farm implements for a period of one year after the
dispossession of the tenant, it shall be presumed that he acted
in bad faith and the land and damages for any loss incurred by
him because of said dispossession: Provided, further, That the
land-holder shall, at least one year but not more than two years
prior to the date of his petition to dispossess the tenant under
this subsection, file notice with the court and shall inform the
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tenant in wiring in a language or dialect known to the latter of


his intention to cultivate the land himself, either personally or
through the employment of mechanical implements, together
with a certification of the Secretary of Agriculture and Natural
Resources that the land is suited for mechanization: Provided,
further, That the dispossessed tenant and the members of his
immediate household shall be preferred in the employment of
necessary laborers under the new set-up.
(b) When the current tenant violates or fails to comply with any of
the terms and conditions of the contract or any of the provisions
of this Act: Provided, however, That this subsection shall not
apply when the tenant has substantially complied with the
contract or with the provisions of this Act.
(c) The tenant's failure to pay the agreed rental or to deliver the
landholder's share: Provided, however, That this shall not apply
when the tenant's failure is caused by a fortuitous event or force
majeure.
(d) When the tenant uses the land for a purpose other than that
specified by agreement of the parties.
(e) When a share-tenant fails to follow those proven farm practices
which will contribute towards the proper care of the land and
increased agricultural production.
(f) When the tenant through negligence permits serious injury to
the land which will impair its productive capacity.
(g) Conviction by a competent court of a tenant or any member of
his immediate family or farm household of a crime against the
landholder or a member of his immediate family.
Sec. 51. Burden of Proof. - The burden of proof to show the existence of
a lawful cause for the ejectment of a tenant shall rest upon the
landholder.

PART V
SPECIAL PROVISIONS

Sec. 52. Duties of the Secretary of Agriculture and Natural Resources. -


It shall be the duty of the Secretary of Agriculture and Natural
Resources to:
1. Conduct such educational programs as circumstances may require
adequately to acquaint tenants and landholders with their rights and
responsibilities under this Act.
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2. Revise the rental rates provided for in Schedules "A", and "B",
whenever such revision is made necessary by changes in values and
prices, so that the rental rates shall conform to the standard of fair
rental value as defined in Section 5(m). cd i
3. Facilities the preparation and registration of land- holder-tenant
contracts through the distribution of appropriate printed forms and
instructions to guide the interested parties in drafting and executing
rental agreements. The forms of contracts must bear the approval of
the court.
4. Conduct surveys and researches to determine the extent of
compliance, adaptability to different crops and areas and the fairness
of this Act to all parties affected by its implementation.
5. Submit an annual report to the President containing an analysis
showing the progress made toward attaining the objectives
enumerated in Section two of this Act and recommendations
concerning methods of improving the implementation and general
effectiveness of this Act. Copies of this report shall be provided to
members of the Congress.
Sec. 53. Duties of Secretary of Justice. - The Secretary of Justice,
through the Executive Judge of the Court, shall be responsible for
formulating a national enforcement program, among other things,
through the assignment of judges and personnel, which will insure the
full enforcement of the provisions of this Act.
Sec. 54. Representation by Counsel. - In all cases wherein a tenant
cannot afford to the represented by counsel, it shall be the duty of the
Public Defender of the Department of Labor to represent him, upon
proper notification by the party concerned, or the court of competent
jurisdiction shall assign or appoint counsel de oficio for the indigent
tenant.
Sec. 55. Applicability of General Laws. - The provisions of existing laws
which are not inconsistent herewith shall apply to the contracts
governed by this Act as well as to acts or omissions by either party
against each other during, and in connection with, their relationship.
cda
Sec. 56. Doubts to Be Solved in Favor of the Tenant. - In the
interpretation and enforcement of this Act and other laws as well as of
the stipulations between the landholder and the tenant, the courts
and administrative officials shall solve all grave doubts in favor of the
tenant.
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Sec. 57. Penal Provision. - Violation of any of the provisions of this Act
shall be punished with a fine not exceeding two thousand pesos or
imprisonment not exceeding one year, or both in the discretion of the
Court. acd
Sec. 58. Separability of Provisions. - If for any reason, any section or
provision of this Act shall be questioned in any court, and shall be
held to be unconstitutional or invalid, no other section or provision of
this Act shall be effected thereby.
Sec. 59. Repealing Provisions. - Public Act Numbered Four thousand
fifty-four, as amended by Republic Act Numbered Thirty-four,
Commonwealth Act Numbered Fifty-three, Commonwealth Act
Numbered Four hundred sixty-one as amended by Republic Act
Numbered Forty- four, and all laws, rules and regulations inconsistent
herewith are hereby repealed.
Sec. 60. Effective Date. - This Act shall take effect upon its approval.
Approved: August 30, 1954

SCHEDULE "A"
The rental value of work animals and farm implements other than
machinery, shall not exceed the allowable depreciation charges plus six per
cent (6%) interest per annum computed on the market value of the said
work animals and farm implements not fixed in this Schedule shall be those
prevailing in the locality where the said animals and implements are rented.
Period of
Item Market deprecia- Allowable Allowable Fair Rental
Valuetion in deprecia- interest at value per
years tion charge 6 per cent annum
Carabao P300.00 10 P30.00 P18.00 P48.00
Bullock 600.00 7 85.9136.00121.00
Horse, native 150.00 8 18.759.00 27.75
Cattle 200.00 7 28.5712.0040.57
Plow, iron 40.005 8.00 2.40 10.40
Plow wooden 25.002 12.501.50 14.00
Harrow iron 18.005 3.60 1.00 4.68
Carreton (native cart) 400.00 10 40.0024.0064.00

SCHEDULE "B"
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The rental value for farm machineries inclusive of tractors, tractor


equipment, engines, motors, and pumps shall not exceed the allowable
depreciation equal to one-tenth (1/10) of the current market value plus
interest at six per cent (6% per annum.

SCHEDULE "C"

The amounts to be charged by the landholder when he performs


services in the operation of the farm enterprise shall not current the rates in
the locality where such services are rendered.